State-owned company Oil Terminal and developer Iulius Real Estate SRL signed a partnership contract at the Ministry of Energy on Thursday for the construction of a huge residential complex worth 800 million euros in the center of the city of Constanta. Minister Sebastien Bourduya also took part in the signing. In short, what does this partnership consist of? The Oil Terminal Company, 87.75% of which is owned by the Ministry of Energy, is relinquishing a 38-hectare plot of land for an annual fee of 2 million euros, subject to indexation, which Iulius Real Estate will develop according to the “City within a City Concept. The parties involved say that it is a “city reconstruction project in Constanta”.

According to the Ministry of Energy, the land was idle for more than 10 years and was used to store oil products. “In addition to an investment estimated at more than 815 million euros in the capitalization of the land as a project that combines urban gardens, offices, shopping and entertainment areas, educational and cultural facilities, as well as integrated infrastructure to support mobility and communication connection, IULIUS will pay Oil Terminal SA an annual surface tax of EUR 2 million, which is subject to indexation,” the Ministry of Energy said in a statement.

Burduzha wants all state-owned companies to form real estate associations

Minister Sebastien Bourduilla says he encourages all companies in the ministry’s portfolio to enter into such partnerships. “This partnership between a company with majority state capital and a serious Romanian entrepreneur with proven results represents the greatest development chance for Constanta and Dobrudja. The goal is to transform the community through a modern space that is attractive for economic opportunities and tourism regardless of the season. We encourage all companies in the portfolio of the Ministry of Economy to enter into such partnerships, competitively and transparently, and thus contribute to the well-being of Romanians by creating jobs and improving the quality of life,” said Sebastian Burduja, Minister of Energy.

The manager of the oil terminal claims that the activities on this land have become unsuitable for the city. “This partnership represents the realization of a very important goal of Oil Terminal SA’s 2020-2025 development strategy to capitalize on land that has been idle for over 10 years, as the previous activity became incompatible with moving into the city, close to residential areas,” Viorel said. – Sorin Chuturianu, general director of the oil terminal.

The land must be landscaped

According to the Ministry of Energy, at the first stage of the association, IULIUS undertook the repayment of environmental obligations regarding the land and its landscaping, which is a priority goal of Oil Terminal SA, which was also a determining criterion in the partner selection process. to capitalize this asset.

The ministry claims that to date the oil terminal has not had its own funds to carry out the necessary landscaping works.

“Constanța is our new destination, a city with great growth potential and valuable human capital. Our goal is firm: to offer the local community an open and useful project for all, with urban gardens and functions of recreation, entertainment and culture, as well as a center of development opportunities, thanks to which many jobs will be created,” said . Julian Daskalou, president of the company IULIUS.

The project includes a botanical garden, a business center and entertainment concepts

The project will be developed according to the “city within a city” concept. This approach involves the integration of a botanical garden and park with outdoor recreation, sports and entertainment functions, as well as an office component. It is also a place for shopping and relaxation, a fresh market with local producers and entrepreneurs, restaurants, bistros and themed cafes, as well as cultural and entertainment functions that will ensure the opportunity to spend quality leisure time all year round.

Oil Terminal is a state-owned oil company and Iulius Real Estate is the development arm of the IULIUS Group, a real estate developer that has built in Iasi, Timisoara, Cluj-Napoca and Suceava.